How markets are moving

slipped 0.4% to 374.82, erasing a small part of a 2.4% rise logged on Thursday, when the index rallied to its best one-day percentage gain since June 19, 2016 on an easing in trade-war worries. For the week, the pan-Europe gauge rose 1.1%, marking its second weekly rise in a row.

Also in focus for investors are the U.S. monthly jobs data, a reflection of the health of the country’s economy. Many European companies count the U.S. as a key market.

What strategists are saying

“It all looks more like a classic Trump negotiation—float an extreme position, to step back from the worst-case scenario in return for some big concessions. Both sides would prefer to negotiate a settlement,” said Neil Wilson, senior market analyst at ETX Capital.

“Nevertheless, markets will be sensitive to the fact that a full-blown trade war could result if the two camps back themselves into a corner. The risk of miscalculation increases the more the two sides push this,” he said.

The economy

The U.S. nonfarm payrolls data for March showed a far-weaker-than-expected gain of 103,000, against an expectation of 170,000. It was the smallest gain in six months. Hourly wages rose 8 cents, or 0.3%, to $26.82 in March. The 12-month increase in pay edged up to 2.7% from 2.6%.

Federal Reserve Chairman Jerome Powell on Friday backed a “patient” approach to raising interest rates. “The FOMC’s patient approach has paid dividends and contributed to the strong economy we have today,” Powell said, in a speech to the Economic Club of Chicago.